Marshall Mohebali, ATP

IRS Announces New Mileage Rates for 2010 

The new mileage rate is $0.50 a mile for business miles driven, and $0.165 a mile for medical and moving miles. Charitable mileage rate remains unchanged at $0.14 a mile.            

2010 Payroll Tax Law Changes

Below is a brief summary of payroll tax changes:

(1)-The 2010 Social Security taxable wage limit will remains at $106,800.00.  Therefore, the maximum employee social security tax withholding in 2010  will be $6,621.60.  The Social Security and Medicare rates stay the same,6.20% (SS) and 1/45% (MED).
(2)-California State disability (SDI) rate remains unchanged at  1.10%, and the wage limit will increase from $90,669.00 to
$93,316.00.  Therefore, the maximum SDI withholding in 2010
increases to $1,026.48.

Blow are the limits for 2010 retirement/defereed compensation:

(1)-SIMPLE retirement plans-stays the same as $11,500.
(2)-401K- $16,500.
(3)-Catch-up contribution for individuals age 50 or over for 401K plans stays at $5,500, and for SIMPLE stays at $2,500.

First time homebuyer credit
You may be able to claim a credit of up to $8000.00 if you are a first time  homebuyer and your modified adjusted gross income is less than $145,000.00 ($245,000.00 if married filing jointly).

CONTACT US:

(925) 556-4336

marshall@mohebali.net